What are the tax implications for 1) the US investor who provides a loan to a Canadian corporation (presumably there will be interest income generated in Canada or possible capital gains in Canada depending upon terms of the loan) and 2) For the Canadian corporation (presumably the Canadian corp could deduct the expense of the interest or any other compensation paid to the US investor)?
Thank you.
US Investor in a Canadian Corporation
Moderator: Mark T Serbinski CA CPA